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Grounded Boeing plane takes a bigger bite out of airlines

DALLAS — Airlines are tallying up the damage and talking to Boeing about compensation for the grounding of the troubled 737 Max jet.

On Thursday, two of the three large U.S. airlines that own Max jets updated estimates of how the grounding is hurting them.

American Airlines said its 2019 earnings will be reduced by $400 million — $50 million more than its previous estimate. Southwest Airlines said the grounding trimmed $175 million from its second-quarter operating profit.

Southwest dropped the plane from its schedule until early January — two months longer than American — to allow time for pilot retraining and avoid disruptions for holiday travelers.

The Max has been grounded since March after two crashes killed a total of 346 people.

Southwest Chairman and CEO Gary Kelly said the airline has had “preliminary discussions” with Boeing about compensation without reaching any conclusion.

Boeing has suggested that compensation will not be entirely in cash. Analysts believe airlines could receive discounts on future orders or other services.

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